Do You Need Title Insurance in Ontario?

What Is Title Insurance?

Title insurance is a one-time premium insurance policy that protects property owners and their mortgage lenders against losses resulting from title-related problems — both those that existed before you purchased the property and those that arise afterward. Unlike other insurance that protects against future risks, title insurance primarily covers past events that may not have been discoverable even through a thorough title search.

What Does Title Insurance Cover?

• Title fraud: Someone fraudulently transfers your property or registers a mortgage against it without your knowledge
• Encroachments: A structure on the property that encroaches onto a neighbour's land or a municipal right-of-way
• Unpaid liens: Claims registered against the property by previous owners' creditors
• Survey issues: Discrepancies between the survey and the actual property boundaries
• Zoning and permit violations: Unpermitted additions or renovations done by previous owners
• Errors in public records: Mistakes in title registration affecting your ownership

Owner's Policy vs. Lender's Policy

Your mortgage lender will typically require a lender's policy. Separately, you should also obtain an owner's policy protecting your equity. These are separate policies — the lender's policy does not protect you as the buyer.

Cost of Title Insurance in Ontario

• Owner's policy: approximately $150–$400 for most residential properties
• Lender's policy: approximately $200–$350

Title insurance is excellent value given the protection provided — particularly against title fraud, which is a growing problem in Ontario.